Gas, utilities and infrastructure will be the key drivers of future growth in Australia, with Australia set to be the fastest-growing major economy in the G7 by 2025, according to a new report from the Australian National University (ANU).
Key points:Energy, transportation and other sectors are key drivers for the country’s economic growth, with the bulk of the growth expected to come from these sectorsThe report says Australia will grow its economy by 2.5% a year by 2025 from its current current rate of 1.5%, but with energy and transport and other key sectors set to become more important, the country will be a bigger economic power by 2025 than it is nowThe report, from the ANU’s Centre for Energy, Transportation and Infrastructure Economics (CTEIE), estimates that energy sector investment will increase by more than $2 trillion over the next 10 years, with transport and manufacturing sectors accounting for more than half of that growth.
In 2025, the ANZ Institute of Infrastructure and Transport Economics (ITETEA) estimates that the average household in Australia will have spent about $200 more on energy than they did in 2020.
The report also found that in 2025, energy efficiency will be an increasingly important driver of future economic growth in the country.
The ANU report found that energy efficiency is predicted to become the biggest driver of economic growth and job creation in the coming decade, accounting for 2.9% of the country´s economic growth by 2025.
This is a significant increase from the previous forecast of 2.4% in 2025.
“In 2025 Australia will be one of the fastest growing major economies in the world, and we have the capacity to drive growth in these sectors, particularly in the energy and transportation sectors,” ANU Economics Professor Ian Robertson said.
“However, we need to look beyond energy to consider the opportunities for the rest of the economy, particularly the infrastructure sector.”
The ANUs research found that, in 2025 the ANUs projected that Australia’s energy sector will generate almost $1 trillion of economic activity, with energy efficient transport and building systems accounting for about two-thirds of this growth.
“With the economic fundamentals of the sector looking good, we are hopeful that by 2025 we can see significant further growth in this sector,” Professor Robertson said.
“It is important to remember that the energy sector is an increasingly large part of the Australian economy, but it is the infrastructure and transport sectors that are driving the economic growth of the nation.”
The infrastructure sector is already in the driver´s seat and will play a key role in Australia´s long-term economic recovery, with more people moving into the jobs of the future,” he said.